AUD/USD trims some of its strong gains to 0.75 neighborhood

The AUD/USD pair maintained its bid tone for the third straight session but has now trimmed some of its strong gains to .7500 neighborhood to currently trade around 0.7465 region. 

With December Fed rate-hike action fully priced-in, growing expectations of faster-than-expected rate-hike next year helped limit greenback retracement and restrict the pair's ongoing recovery momentum from last week's nearly 5-month. However, upbeat sentiment surrounding base metals, especially Copper, is indicative of investors' appetite for riskier / higher-yielding currencies - like the Aussie.

With an empty US economic calendar, traders on Monday will remain focused on ECB President Mario Draghi's testimony before the European Parliament's Economic Committee, which although not directly related might continue to impact investor risk-appetite and drive the major from current levels. 

However, this week's important US macro data - revised GDP print on Tuesday and Friday's monthly jobs report (NFP) would be the next important fundamental triggers helping investors to determine the next leg of directional move for the major. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "Technically, the daily chart shows that the 20 SMA maintains a sharp bearish slope well above the current level, now around 0.7530, while technical indicators have kept correcting higher and maintain upward slopes, but hold within bearish territory. In the 4 hours chart,  the pair is biased higher according to technical readings, given that the price is developing above a bullish 20 SMA, while technical indicators have bounced strongly from their mid-lines, maintaining their upward momentum."

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